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The real value of free

Many marketers avoid using the word “free” in their advertising. The fear is that the general public has become immune to the word. That they will see (or hear) it and think – spam. I know this because I used to be one of them. However, behavioral economics has done a lot of studies into the power of “free” Is its value higher than zero? It turns out…that it is. Picture this: You are walking into the grocery store and see a small stand selling candy. Even if you are one of those people who typically avert your eyes and walk by as quickly as possible…let’s assume you stop (and that you have change in your pocket). They are selling[….]

What is behavioral economics?

First off, behavioral economics is awesome. Second, it’s fascinating. I know the name makes it sound a little boring, so let me tell you more… Economics is essentially the study of money and how it moves from one place to another. Economists do a lot of modeling and predictions about what people will do and how they will spend their money. The problem? They assume rational beings. And, as we all know… Most humans are not rational (that’s the real 99%). Even though they are not rational, they are predictable. That is where behavioral economics comes in. Behavioral economists (and often psychologists) do tests to see how people react and construct rules about that. The lessons learned help companies and[….]